Radware Ltd., the maker of technology that helps Internet networks run more efficiently, jumped 21 percent after Israeli newspaper Calcalist reported Riverbed Technology Inc. may seek to acquire it.
Radware, based in Tel Aviv, gained $7.01 to $39.77 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have more than doubled this year.
The company’s technology would help a buyer cater to customers aiming to cope with rising reams of digital information, said Ashok Kumar, an analyst at Rodman & Renshaw LLC in New York. Companies including Hewlett-Packard Co. and Dell Inc. are using deals to step up their ability to sell products and services that help providers equip data centers.
“Radware does have very attractive intellectual property for players who are looking to expand their footprint in the data center market,” said Kumar, who rates Radware “outperform” and doesn’t own the shares. “Further consolidation in this space is inevitable.”
Joyce Anne Shulman, a Radware spokeswoman, and Jin Woo, a spokesman for San Francisco-based Riverbed, declined to comment.
HP, based in Palo Alto, California, is also in talks to buy Radware, according to Globes, another Israeli news service.
Gina Tyler, a spokeswoman for HP, declined to comment.